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Company auditors report

TAI CHONBANG TEXTILE INDUSTRIES LIMITED
ANNUAL REPORT 2003-2004
AUDITORS' REPORT
To
The Shareholders
TAI GHONBANG TEXTILE INDUSTRIES LIMITED
1. We have audited the attached Balance Sheet of Tai Chonbang Textile
Industries Limited as at March 31, 2004 and also the Profit and Loss
Account and the cash flow statement for the year ended on that date,
annexed thereto. These financial statements are the responsibility of the
Company's management, Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit it accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amount and disclosures
in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
3. As required by the Companies (Auditor's Report) Order 2003 issued by the
Central Government of India in terms of sub-section (4A) of Section 227 of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said order.
4. Further to our comments in the Annexure referred to vide paragraph 3
above, we report that :
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit:
(ii) In our opinion, proper books of account as required by law, have been
kept by the company, so far as it appears from our examination of such
books:
(iii) The Balance Sheet, Profit & Loss Account and cash flow statement
referred to in this report are in agreement with the books of account;
(iv) In our opinion, the Balance sheet, Profit and Loss Account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Companies
Act, 1956;
(v) On the basis of written representations received from the directors. as
on March 31, 2004 and taken ors record by the Board of Directors, we report
that none of the directors is disqualified as on March 31, 2004 from being
appointed as a director in terms of clause(g) of sub-section (1) of section
274 of the Companies Act, 1956.
5. In our opinion and to the best of our information and according to the
explanations given to us, the said statements of account give the
information required by the Companies Act, 1956. in the manner so and give
a true and fair view in conformity with the accounting principles generally
accepted in India.
(a) in the case of the Balance sheet, of the state of affairs of the
Company as at March 31, 2004.
(b) In the case of the Profit and Loss Account, of the loss for the year
ended on that date,
(c) In case of Cash Flow Statement, of the flows for the year ended on that
date.
For and on behalf of
PAREEK & ASSOCIATES
Chartered Accountants
Place : Kolkata (R.C. PAREEK)
Date : 30th June 2004 Partner
ANNEXURE TO THE AUDITOR'S REPORT
1. (a) The company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management during the
year, which in our opinion is reasonable having regard to the size of the
company and the nature of its fixed assets.
(c) There was no substantial disposal of fixed assets during the year,
which would affect the going concern of the Company.
2. (a) The management had conducted physical verification of inventory at
reasonable intervals.
(b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification.
3. As informed to us, the Company has neither granted nor taken any loans,
secured or unsecured, to/from companies, firms or other parties covered in
the register maintained under section 301 of the Companies Act 1956 and as
such clauses (iii) (a) to iii(d) are riot applicable.
4. In our opinion and according to the information and explanation given to
us, there are adequate internal control procedures commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets and sale of goods. There is no continuing
failure to correct major weaknesses in the internal control.
5. (a) Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that there are no transactions that need to be entered into the
register maintained under Section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information and explanations given
to us, as there are no transactions that need to be entered into the
register maintained under section 301 of the Companies Act 1956, the clause
v (b) is not applicable.
6. The company has not received any deposit from the public. Hence the
question of compliance with the directive issued by the Reserve Bank of
India and provision of section 58A of the Companies Act, 1956 and the rules
trained there under does not arise.
7. in our opinion, the company has an internal audit system commensurate
with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the Company
pursuant to the order made by the Central government of the maintenance of
cost records under Section 209(1) (d) of the companies Act 1956 and are of
the opinion that prima facie the prescribed accounts and records have been
made and maintained.
9. (a) According to the records of the Company, the Company is generally
regular in depositing undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance, Income
tax, Sales tax, Wealth tax, Customs Duty, Excise Duty, cess and other
statutory dues applicable to it with the appropriate authorities though
there has been delay in few cases. According to the information, and
explanations given to us, there are no undisputed amounts payable in
respect of income tax. wealth tax, sales tax, customs duty and excise duty
which were outstanding, at the year end for a period of more than six
months from the date from the date they became payable.
(b) There are no dues outstanding of sales-tax income-tax, custom duty,
wealth tax, excise duty and Cess on account of any dispute.
10. The Company's accumulated losses at the end of the financial are more
than fifty per cent of its net worth and it has incurred cash losses both
in current as well as immediately preceding financial year.
11. According to the information and explanations given to us and based on
books and records maintained by the company entire banks dues are now
repayable since all accounts have been classified by the banks as NPA.
12. According to the information and explanation given to us and based on
the documents and records produced to us, the Company has not granted loans
and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion and according to the information and explanations given
to us, the nature of activities of the company does not attract any special
statue applicable to chit fund and nidhi/mutual benefit fund/societies.
14. As informed and explained to us, the Company has not dealt/treated in
securities or debentures during the year. In our opinion and according to
the information and explanation given to us, proper records have been
maintained of the transactions and contracts relating to dealing /trading
in shares and other investments and timely entries have been made therein.
The shares and other investments have been held by the company, in its own
name.
15. According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from bank or
financial institutions.
16. According to the information and explanations given to us term loan
taken in earlier years were applied for the purposes for which the loans
were obtained.
17. On the basis of information received from the management and based on
our examination of the balance sheet of the company as at March 31, 2004 we
find that the funds raised on a short-term basis have not been used for
long term investment and vice-versa.
18. The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under Section 301
of the Companies Act, 1956.
19. The company did not have any outstanding debentures during the year.
20. The company has not raised any money through a public issue during the
year.
21. Based on information and explanation furnished by the management, which
have been relied upon by us, there were no frauds on or by the company
noticed or reported during the year.
For and on behalf of
PAREEK & ASSOCIATES
Chartered Accountants
Place : Kolkata (R.C. PAREEK)
Date : 30th June 2004 Partner